Property Week

Valor develops a knack for prime urban logistics sites

9 November 2025

Last-mile logistics specialist Valor Real Estate Partners has amassed assets under management of more than £3.Sbn since its formation in 2016, through acquisitions and development.

Its latest scheme is Valor Park East Circular in Beckton, east London, which comprises four units ranging from 27,000 sq ft to 85,000 sq ft.

The 10-acre site stands out as a rarity: a 216,000 sq ft development within London. To make the most of the location, Valor has configured the units for ecommerce and ‘q-commerce’ (quick commerce) occupiers, designed to meet a growing need to support online shopping trends in the capital.

Brad Stitchberry, Valor’s head of asset management, tells Property Week about the challenges of developing in land-constrained markets.

Given the limited land availability in east London, how did Valor identify and assemble the Valor Park East Circular site?

Our ability to assemble sites in urban areas is really a function of having the right teams in place. Some people may not associate Valor with ground-up development, but we have a dedicated
development team of three transaction managers who are experienced in complex title issues and negotiations, as well as five construction specialists who are well versed in navigating development constraints.

This site was being sold by AMC as it was shutting down a cinema. However, another group owned part of the site and had parking rights. Our transaction managers had to negotiate with both
parties in tandem and make sure everyone walked away happy. Our construction team then had the technical expertise to unlock the site within development constraints and also secure a change of
use.

What are the most important features in prime urban logistics spaces?

That is largely determined by where the project is. We speak a lot internally about ‘relative’ functionality and our aim is to deliver best-in-class functionality for that specific location. For example, you wouldn’t think of delivering a 25m yard for a new development at Thurrock [in Essex], but a 25m yard may feel really good for [London] locations like Hackney, Wandsworth and Canning Town.

Equally, when developing in slightly less land-constrained submarkets, we ensure we have an outsized yard, extra trailer parking and high, clear heights. At this site, its size allowed us to lay out extremely functional buildings that are all fully secure, with ample yards – the largest is 55m – and heights ranging from 10m to 15m. We also have to try to balance occupiers’ parking requirements with local policy.

Are occupier ESG expectations changing?

It is certainly more of a focus than it was a few years ago, but we still don’t see it as the factor driving occupiers’ decision-making processes as much as other factors. That said, it is clearly evolving, and we continue to play our part by delivering buildings with strong green accreditations and ESG features, such as photovoltaic panels, electric vehicle charging and LED lighting.

What businesses do you target at VaLor Park?

Logistics companies and 3PLs [third-party logistics] have been the most prominent theme given the unit height, road connections and proximity to central London. But we’ve also had interest from a range of manufacturers, trade occupiers and food users. This is supported by the survey data from our in-house research team, which shows that Barking and Beckton place in the top five for high-frequency orders for groceries, with consumers ordering large basket sizes frequently online.

This tells us this is a prime location for distribution space.

Which factors affect take-up across London?

There are conflicting factors at play. Internet retailing’s proportion of total retail sales is rising again and consumer expectations for faster delivery and seamless returns are also intensifying. Both factors drive the need for more strategically located urban logistics facilities closer to major population centres.

However, global trade volatility caused by tariff uncertainty and geopolitical instability is creating an environment where it is very difficult for occupiers to forecast what the next six to 12 months look like for their business. Without that visibility, it has become challenging for occupiers to make a decision and commit to taking new space.

How important is development to Valor’s strategy?

Development has been a much larger focus for the business than many realise. To date, development represents about 20% our gross asset value. But it is not just London; while the UK accounts for a little more than half of our future development pipeline, the other 48% comes from the Continent, in similar projects in Paris, Berlin and Amsterdam.

Our teams do an incredible job at finding great sites at an attractive basis in very land-constrained markets. Given the ability then to deliver outsized returns, development will continue to be an important component of our overall strategy.